Commentators are fixated on the fact that BlueMountain, which is run by another JPMorgan alumnus Andrew Feldstein, made substantial profits in 2012 by betting against the trades accumulated by the London Whale.
However, I am more intrigued by the stalling of Staley. In late 2009, when Bill Winters was ousted as co-chief of the investment bank, and Jes stepped into the breach, Staley was serenaded as the new golden boy. Some even talked of him as a successor to group CEO Jamie Dimon.
However, despite producing respectable returns, Staley was himself ousted in July 2012 and replaced by co-heads Michael Cavanagh and Daniel Pinto. Both men are in their 40s and some 10 years younger than Staley, so the change was dressed up as a "generational hand-over".
A mole mutters that Dimon and Staley might have fallen out during the kerfuffle surrounding the Whale losses. Staley was given the title of chairman of the investment bank, which hints at a resting stage for a faithful, but no longer irreplaceable, servant. After all, when you have two chief executives, senior management ranks hardly need further padding. And then began a slightly bizarre recruitment dance conducted in full view of the financial media.